As a homeowner, you want to ensure that your castle is not only a comfortable and safe space for your family, but the best investment you’ve ever made.
The good news is that whether you're planning to sell in the future or just want to one-up your neighbor, there are certain factors that can increase your home's value.
Today, I’ll break down some of the key factors for you today, and you can read about the factors to actually avoid – that will sink your home’s value – in our past blog here.
https://www.siliconeastrealestate.com/10-things-in-the-neighborhood-that-will-sink-your-homes-value
Here are 10 factors that can increase a home's value, backed by some relevant statistics:
1. Location, Location, and Location!
Homes located in desirable neighborhoods with good schools and low crime rates will always be more valuable. According to Zillow, homes in the top-rated school districts sell for an average of 49% more than those in lower-rated districts!
Furthermore, proximity to amenities like shopping, restaurants, and entertainment usually add more valuable.
2. Size and Layout:
Larger homes with more bedrooms and bathrooms generally command higher prices. According to HomeAdvisor, each additional bedroom can increase a home's value by 4-5%, while each additional bathroom can add 20%. If you grew up in a big family with only one bathroom, you know this is true!
3. Upgrades and Renovations:
Homes that have been upgraded or renovated, particularly in high-traffic areas like kitchens and bathrooms, can increase in value. According to Remodeling Magazine, a minor kitchen remodel can have a return on investment of over 70%, while a major kitchen remodel can have an ROI of nearly 60%.
4. Curb Appeal:
A well-maintained and attractive exterior can increase a home's value. So, this weekend, plant those flowers, trim those bushes, and paint that front door! According to a study by the National Association of Realtors, homes with good curb appeal sell for an average of 7% more than similar homes without it. That’s a huge bump!
5. Energy Efficiency:
Homes that are energy-efficient, with features like double-paned windows, insulation, and energy-efficient appliances, can raise your appraised value. According to the National Association of Home Builders, buyers are willing to pay an average of $8,728 more for a home that saves $1,000 a year on energy costs!
6. Outdoor Living Spaces:
When the weather is good in Sacramento (and the allergies not too bad), there’s nothing better than taking the family outside to enjoy your yard or patio. Homes with outdoor living spaces like decks, patios, and porches can add up to 12% to a home's value if they’re done right.
7. Plenty of Storage:
There’s nothing worse than running out of closet space or having an overly cluttered garage. Homes with ample storage, including closets, pantries, and garages, can be more valuable. According to a survey by the National Association of Home Builders, 92% of buyers want a laundry room, 86% want a walk-in pantry, and 80% want a garage. (And most guys want a three-car garage!)
8. Smart Home Technology:
These days, smart homes are very desirable with buyers. According to one recent survey, 81% of buyers are more likely to buy a home with smart home technology. So, houses equipped with smart home technology like thermostats, security systems, and lighting, can be more valuable.
9. Historical or Architectural Significance:
Homes with historical or architectural significance, like those in historic districts of downtown Sacramento, can be more valuable. According to a study by the National Trust for Historic Preservation, homes in historic districts appreciate an average of 5% more per year than those outside them.
10. Great Views:
Homes with desirable views, like those of the ocean (ok, or river in Sactown!), mountains, or city skyline can be more valuable. According to a study by Redfin, homes with water views sell for an average of 78% more than those without them.
These factors are a general guide, but every home, every neighborhood, and every housing market is different.
For instance, over-improving – like adding a 2,000 square foot addition when all other homes in your neighborhood are only 1,200 square feet – can actually drop your value, comparatively.
So, before you swing a hammer or start spending your hard-earned dollars, please give me a call.
We can talk about your home and see what factors may be appropriate to add or change, and how that will increase your sale’s price.
And when it’s time to buy a home, of course I’ll make sure to look out for you!
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